GCE_MBA_SEM-3.docx

7/28/2019 GCE_MBA_SEM-3.docx

1/55

GLOBAL

COUNTRY

REPORT

PATEL GROUP OF INSTITUTIONS

MBA DEPARTMENT

UGANDA TELECOM SECTOR


2/55


PREPARED BY: PIYUSH MISTRI & RAVI PATEL


3/55




4/55




5/55



A

GLOBAL COUNTRY STUDY AND REPORT

ON

UGANDA TELECOM SECTOR

SUBMITTED TO


(MOTIDAU, MEHSANA)

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

IN

GUJRAT TECHNOLOGICAL UNIVERSITY

UNDER THE GUIDANCE OFFaculty Guide

SUBMITTED BY

Batch: 2010-12MBA SEMESTER III


MBA PROGRAMME

Affiliated to Gujarat Technological UniversityAhmadabad

11, 2011


6/55



Students Declaration

We, __________________________________, hereby declare

that the report for Global/ Country Study Report entitled Telecomsector in (UGANDA) is a result of our own work and our

indebtedness to other work publications, references, if any, have

been duly acknowledged.

Place: ..

(Signature)

Date:

(Name of Student)


7/55



Institutes Certificate

Certified that this Global /Country Study and Report Titled

is the bonafide work of Mr./ Ms

.. (Enrollment No..), who carried out the

research under my supervision. I also certify further, that to the

best of my knowledge the work reported herein does not form part

of any other project report or dissertation on the basis of which a

degree or award was conferred on an earlier occasion on this or

any other candidate.

Signature of the Faculty Guide

(Name and Designation of Guide)

(Certificate is to be countersigned by the Director/HoD)


8/55



General Model Format or GSR Project

SR.NO PARTICULERS PAGENO

1Demographic Profile of the Country

2 Economic Overview of the Country

3 Overview of Industries Trade and Commerce

4 Overview Different economic sectors of selected country

5 Overviews of Business and Trade at International Level

6 Present Trade Relations and Business Volume of differentproducts with India

7PESTEL Analysis


9/55



1Uganda Demographics Profile


10/55



Population:-

Estimates for this country explicitly take into account the effects of excess mortality

due to AIDS; this can result in lower life expectancy, higher infant mortality, higherdeath rates, lower population growth rates, and changes in the distribution of

population by age and sex than would otherwise be expected.

Age structure:-

0-14 years: 49.9% (male 8,692,239/female 8,564,571)

15-64 years: 48.1% (male 8,383,548/female 8,255,473)65 years and over: 2.1% (male 291,602/female 424,817) (2011 est.)

Median age:-

Total:15.1years

male:15years

female: 15.1 years (2011 est.)

Population growth rate:-

3.576% (2011 est.)

Birth rate:-

47.49 births/1,000 population (2011 est.)

Death rate:-

11.71 deaths/1,000 population (July 2011 est.)

Net migration rate:-


11/55



-0.02 migrant(s)/1,000 population (2011 est.)

Urbanization:-

Urban population: 13% of total population (2010)

rate of urbanization: 4.8% annual rate of change (2010-15 est.)

Sex ratio:-

At birth: 1.03 male(s)/femaleunder 15 years: 1.01 male(s)/female15-64 years: 1.01 male(s)/female65 years and over: 0.7 male(s)/femaletotal population: 1.01 male(s)/female (2011 est.)

Infant mortality rate:-

Total: 62.47 deaths/1,000 live birthsmale: 66.05 deaths/1,000 live birthsfemale: 58.77 deaths/1,000 live births (2011 est.)

Life expectancy at birth:-

Total population: 53.24 years

male: 52.17 yearsfemale: 54.33 years (2011 est.)

Total fertility rate:-

6.69 children born/woman (2011 est.)

HIV/AIDS - adult prevalence rate:-

6.5% (2009 est.)

HIV/AIDS - people living with HIV/AIDS:-

1.2 million (2009 est.)

HIV/AIDS deaths:-


12/55



64,000 (2009 est.)

Major infectious diseases:-

Degree of risk: very high

food or waterborne diseases: bacterial diarrhea, hepatitis A, and typhoid fevervectorborne diseases: malaria, plague, and African trypanosomiasis (sleepingsickness)water contact disease: schistosomiasisanimal contact disease: rabies (2009)

Nationality:-

noun: Ugandan(s)adjective: Ugandan

Ethnic groups:-

Baganda 16.9%, Banyakole 9.5%, Basoga 8.4%, Bakiga 6.9%, Iteso 6.4%, Langi6.1%, Acholi 4.7%, Bagisu 4.6%, Lugbara 4.2%, Bunyoro 2.7%, other 29.6% (2002census)

Religions-

Roman Catholic 41.9%, Protestant 42% (Anglican 35.9%, Pentecostal 4.6%,Seventh Day Adventist 1.5%), Muslim 12.1%, other 3.1%, none 0.9% (2002 census)

Languages:-

English (official national language, taught in grade schools, used in courts of lawand by most newspapers and some radio broadcasts), Ganda or Luganda (mostwidely used of the Niger-Congo languages, preferred for native languagepublications in the capital and may be taught in school), other Niger-Congolanguages, Nilo-Saharan languages, Swahili, Arabic

Literacy:-

Definition: age 15 and over can read and writetotal population: 66.8%male: 76.8%female: 57.7% (2002 census)

School life expectancy (primary to tertiary education)


13/55



Total: 11 yearsmale: 11 yearsfemale: 11 years (2009)

Education expenditures:-

3.2% of GDP (2009)

Maternal mortality rate:-

430 deaths/100,000 live births (2008)

Children under the age of 5 years underweight:-

16.4% (2006)

Health expenditures:-

8.2% of GDP (2009)

Physicians density:-

0.117 physicians/1,000 population (2005)

Hospital bed density:-

0.39 beds/1,000 population (2009)


14/55



2Economic Overview of the Country


15/55



Uganda has made significant progress in implementing economic reforms.

During the past six years, inflation came down to 5.3 percent from 16.1 percent, and the

overall fiscal deficit (excluding grants) was reduced to 6.5percent from 11.2percent of

GDP. Uganda has also made a strong structural adjustment effort in recent years,

including in the areas of t rade l iberal izat ion, tax administrat ion, and publ ic

enterpr ise reform. Uganda has recently completed a poverty reduction strategy

involving a participatory process. While Uganda remains one of the poorest countries in

the world, the share of the population living in poverty declined to 44 percent in 1996/97,

from 56 percent in 1992/93.

Substantial improvements in social indicators have also been recorded, the most

notable is in the area of primary education where enrollment reached 6.5 million

children in March 1999 from 2.3 million in December 1996, and the net enrollment rate

increased from 56 percent in 1995/96 to 94 percent in 1998/99.

Uganda has substantial natural resources, including fertile soils, regular rainfall,

and sizable mineral deposits of copper and cobalt. Agriculture is the most important

sector of the economy, employing over 80% of the work force. Coffee accounts for the

bulk of export revenues.

Since 1986, the government - with the support of foreign countries and

international agencies - has acted to rehabilitate and stabilize the economy by

undertaking currency reform, raising producer prices on export crops, increasing prices

of petroleum products, and improving civil service wages. The policy changes are

especially aimed at dampening inflation and boosting production and export earnings.

During 1990-2001, the economy turned in a solid performance based on

continued investment in the rehabilitation of infrastructure, improved incentives for

production and exports, reduced inflation, gradually improved domestic security, and the

return of exiled Indian-Ugandan entrepreneurs. Corruption within the government and


16/55



slippage in the government's determination to press reforms raise doubts about the

continuation of strong growth.

In 2000, Uganda qualified for enhanced Highly Indebted Poor Countries (HIPC)

debt relief worth $1.3 billion and Paris Club debt relief worth $145 million. These

amounts combined with the original HIPC debt relief added up to about $2 billion.

Growth for 2001-02 was solid despite continued decline in the price of coffee, Uganda's

principal export. Solid growth in 2003 reflected an upturn in Uganda's export markets.

PRINCIPAL GROWTH SECTORS

Agricultural production represents a considerable proportion of Uganda's GDP

and generates over 90 percent of export earnings. Coffee provides between 60 and 70

percent of export earnings. There is significant potential for substantial increases in

agricultural production in a wide variety of areas, including non-traditional exports such

as flowers, vanilla, silk and traditional exports such as cotton, tobacco and tea.

Construction and infrastructure are also principal sectors. Uganda plans to build

one to three hydroelectric projects on the Nile River through the next decade in order to

address Uganda's increasing shortage of electric power. Uganda currently exports

electricity to nearby countries, and this market will likely expand. On the supply side,

one dam built in 1953 currently supplies all of Uganda's electric power.

The GOU is also putting emphasis on construction and maintenance of truck and

feeder roads. Uganda's rural feeder roads cover about 13,000 miles but maintenance

continues to be a major problem. Uganda's communications infrastructure has been

growing rapidly with the establishment of a privately owned second national operator

(SNO) and the pending privatization of Uganda Telecoms Limited (UTL).


17/55



FISCAL YEAR: 1st July to next 30th June.GNI:Atlas method (current US$): 6.2 billionPer capita, Atlas method (current US$): 240.0

GDP:Current $:6.2 billionGrow th (annual %):4.9%, according to 2003

Per Capita:Purchasing power parity - $1,400,where in Bangladesh it is $1724.44.GDP - composition by sector:The GDP of Uganda is composition by three main sectors, which are agriculture,industry and service. The percentage in given below by chart


18/55



INVESTMENT (gross fixed): 20.3% of GDP, estimated at 2003.HOUSEHOLD INCOME OR CONSUMPTION BY PERCENTAGE SHARE:

DISTRIBUTION OF FAMILYINCOMEGINI Indexes: 37.4

INFLATION RATE (consumer prices): 7.9% (2003 est.)LABOR FORCE: 12.09 million (2003 est.)LABOR FORCE BY OCCUPATION:

BUDGET:

Including capital expenditure :-AGRICULTURE PRODUCTS: Coffee, tea, cotton, tobacco, cassava (tapioca), potatoes,corn, millet, pulses; beef, goat meat, milk, poultry, cut flowers.INDUSTRIES: sugar, brewing, tobacco, cement, and cotton textiles.INDUSTRIAL PRODUCTION GROWTH RATE: 5% (2003 est.)ENERGY SOURCES:


19/55



Electricity:

Electricity production source:

Oil:


20/55



Economy

For decades, Uganda's economy suffered from devastating economic policies

and instability, leaving Uganda as one of the world's poorest countries. The country has

commenced economic reforms and growth has been robust. In 2008, Uganda recorded

7% growth despite the global downturn and regional instability.[21]

Uganda has substantial natural resources, including fertile soils, regular rainfall,

and sizable mineral deposits of copper and cobalt. The country has largely untapped

reserves of both crude oil and natural gas.[22]While agriculture used to account for 56%

of the economy in 1986, with coffee as its main export, it has now been surpassed by

the services sector, which accounted for 52% of percent GDP in 2007.[23]In the 1950s

the British Colonial regime encouraged some 500,000 subsistence farmers to join co-

operatives.[24] Since 1986, the government (with the support of foreign countries and

international agencies) has acted to rehabilitate an economy devastated during the

regime of Idi Amin and subsequent civil war.[2]Inflation ran at 240% in 1987 and 42% in

June 1992, and was 5.1% in 2003.
http://en.wikipedia.org/wiki/Uganda#cite_note-20http://en.wikipedia.org/wiki/Uganda#cite_note-20http://en.wikipedia.org/wiki/Uganda#cite_note-20http://en.wikipedia.org/wiki/Mineralhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Cobalthttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Uganda#cite_note-oilrush-21http://en.wikipedia.org/wiki/Uganda#cite_note-oilrush-21http://en.wikipedia.org/wiki/Uganda#cite_note-oilrush-21http://en.wikipedia.org/wiki/Uganda#cite_note-22http://en.wikipedia.org/wiki/Uganda#cite_note-22http://en.wikipedia.org/wiki/Uganda#cite_note-22http://en.wikipedia.org/wiki/Uganda#cite_note-23http://en.wikipedia.org/wiki/Uganda#cite_note-23http://en.wikipedia.org/wiki/Uganda#cite_note-23http://en.wikipedia.org/wiki/Uganda#cite_note-cia-1http://en.wikipedia.org/wiki/Uganda#cite_note-cia-1http://en.wikipedia.org/wiki/Uganda#cite_note-cia-1http://upload.wikimedia.org/wikipedia/commons/2/25/Uganda-Development.JPGhttp://en.wikipedia.org/wiki/Uganda#cite_note-cia-1http://en.wikipedia.org/wiki/Uganda#cite_note-23http://en.wikipedia.org/wiki/Uganda#cite_note-22http://en.wikipedia.org/wiki/Uganda#cite_note-oilrush-21http://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Cobalthttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Mineralhttp://en.wikipedia.org/wiki/Uganda#cite_note-20


21/55



Between 1990 and 2001, the economy grew because of continued investment in

the rehabilitation of infrastructure, improved incentives for production and exports,

reduced inflation and gradually improved domestic security. Ongoing Ugandan

involvement in the war in the Democratic Republic of the Congo, corruption within the

government, and slippage in the government's determination to press reforms raise

doubts about the continuation of strong growth.

In 2000, Uganda was included in the Heavily Indebted Poor Countries (HIPC)

debt relief initiative worth $1.3 billion and Paris Club debt relief worth $145 million.

These amounts combined with the original HIPC debt relief added up to about $2 billion.

In 2006 the Ugandan Government successfully paid all their debts to the Paris Club,

which meant that it was no longer in the (HIPC) list. Growth for 20012002 was soliddespite continued decline in the price of coffee, Uganda's principal export. According to

IMF statistics, in 2004 Uganda's GDP per capita reached $300, a much higher level

than in the 1980s but still at half the Sub-Saharan African average income of $600 per

year. Total GDP crossed the 8 billion dollar mark in the same year.

Economic growth has not always led to poverty reduction. Despite an average

annual growth of 2.5% between 2000 and 2003, poverty levels increased by 3.8%

during that time.[25]This has highlighted the importance of avoiding jobless growth and

is part of the rising awareness in development circles of the need for equitable growth

not just in Uganda, but across the developing world.

With the Uganda securities exchanges established in 1996, several equities have

been listed. The Government has used the stock market as an avenue for privatisation.

All Government treasury issues are listed on the securities exchange. The Capital

Markets Authority has licensed 18 brokers, asset managers and investment advisors

including names like:African Alliance Investment Bank, Baroda Capital Markets Uganda

Limited, Crane Financial Services Uganda Limited, Crested Stocks and Securities

Limited, Dyer & Blair Investment Bank, Equity Stock Brokers Uganda Limited,

Renaissance Capital Investment Bank and UAP Financial Services Limited. As one of
http://en.wikipedia.org/wiki/Second_Congo_Warhttp://en.wikipedia.org/wiki/Heavily_Indebted_Poor_Countrieshttp://en.wikipedia.org/wiki/Paris_Clubhttp://en.wikipedia.org/wiki/Sub-Saharan_Africahttp://en.wikipedia.org/wiki/Poverty_reductionhttp://en.wikipedia.org/wiki/Uganda#cite_note-ODI-24http://en.wikipedia.org/wiki/Uganda#cite_note-ODI-24http://en.wikipedia.org/wiki/Uganda#cite_note-ODI-24http://en.wikipedia.org/wiki/Jobless_growthhttp://en.wikipedia.org/wiki/Development_economics#equitable_growthhttp://en.wikipedia.org/wiki/Development_economics#equitable_growthhttp://en.wikipedia.org/wiki/Jobless_growthhttp://en.wikipedia.org/wiki/Uganda#cite_note-ODI-24http://en.wikipedia.org/wiki/Poverty_reductionhttp://en.wikipedia.org/wiki/Sub-Saharan_Africahttp://en.wikipedia.org/wiki/Paris_Clubhttp://en.wikipedia.org/wiki/Heavily_Indebted_Poor_Countrieshttp://en.wikipedia.org/wiki/Second_Congo_War


22/55



the ways of increasing formal domestic savings, Pension sector reform is the centre of

attention (2007).

Uganda traditionally depends on Kenya for access to the Indian Ocean port of

Mombasa. Recently, efforts have intensified to establish a second access route to the

sea via the lakeside ports of Bukasa in Uganda, and Musoma in Tanzania, connected

by railway to Arusha in the Tanzanian interior and to the port of Tanga on the Indian

Ocean.[29]Uganda is a member of the East African Community and a potential member

of the planned East African Federation.
http://en.wikipedia.org/wiki/Kenyahttp://en.wikipedia.org/wiki/Indian_Oceanhttp://en.wikipedia.org/wiki/Mombasahttp://en.wikipedia.org/wiki/Musomahttp://en.wikipedia.org/wiki/Tanzaniahttp://en.wikipedia.org/wiki/Arushahttp://en.wikipedia.org/wiki/Tanga,_Tanzaniahttp://en.wikipedia.org/wiki/Uganda#cite_note-28http://en.wikipedia.org/wiki/Uganda#cite_note-28http://en.wikipedia.org/wiki/Uganda#cite_note-28http://en.wikipedia.org/wiki/East_African_Communityhttp://en.wikipedia.org/wiki/East_African_Federationhttp://en.wikipedia.org/wiki/East_African_Federationhttp://en.wikipedia.org/wiki/East_African_Communityhttp://en.wikipedia.org/wiki/Uganda#cite_note-28http://en.wikipedia.org/wiki/Tanga,_Tanzaniahttp://en.wikipedia.org/wiki/Arushahttp://en.wikipedia.org/wiki/Tanzaniahttp://en.wikipedia.org/wiki/Musomahttp://en.wikipedia.org/wiki/Mombasahttp://en.wikipedia.org/wiki/Indian_Oceanhttp://en.wikipedia.org/wiki/Kenya


23/55



3

Overview of Industries,

Trade and Commerce


24/55



TRADE IN GOODS (as a share of GDP): 36.7%EXPORT: $495 million f.o.b. while Bangladesh exports 6.6 billion.High-technology exports: 12.4% of manufactured exports.Export commodities:

Coffee,

Export Partners:


25/55



Traditional & Non- Traditional Exports by Value (US$000)

IMPORT: $1.179 billion f.o.b. whereas Bangladesh imports $8.7 billion.Import commodities:

Capital equipment,


26/55



Import Partners:

Value of Imports and Exports (000 US $)

RESERVES OF FOREIGN EXCHANGE & GOLD: $1.08 billionFOREIGN DIRECT INVESTMENT: $149.9 million, net inflows in reporting country.ECONOMIC AIDRECIPIENT: $1.4 billion whereas Bangladesh gets $1.575 billion.

AID PERCAPITAL: $ 25.9Receipts:Net ODA: 638(USD million).

Bilateral Share: 66% (gross ODA)Net ODA/GNI: 11.2%Net Private Flows: -1(USD million)Bilateral ODA by Sectors (2001-2002)


27/55



PRESENT VALUE OF DEBT : $1.3 billionTOTAL DEBT SERVICE: 7.1%, of exports of goods and services.SHORT-TERM DEBT OUTSTANDING: $153.4 million.

DEBT:Public: 62.2% of GDPExternal: $3.818 billion.


28/55



EXCHANGE RATE: (Ugandan shillings per US dollar)


29/55



TRADE REGULATIONS AND STANDARDS

TRADE BARRIERS

In order to reduce costs and increase competitiveness, all 30 percent import duties werereduced to 15 percent in 1998. Excise surcharges have been unified at 10 percent.

Further reductions are planned during the next two years.

Import bans have been phased out for beer, soda, batteries and cigarettes. Small

reductions in fuel duties were introduced in an attempt to reduce costs for producers

and transporters. The GOU has promised to lower these rates further in the next few

years.

CUSTOMS VALUATION

Uganda follows the Harmonized System (HS) of categorizing goods. All imported goods

are subject to an Intertek Testing Services (ITS) pre-shipment inspection in the country

of origin. The ITS pre-shipment inspection covers:

Verification of the quantity and quality of imported goods to ensure conformity with

contractual specifications

Price comparison to ensure that the price of imported goods corresponds to the

prevailing export market price of comparable goods

Verification of the customs classification code and evaluation of the dutiable value of

imported goods according to Uganda Customs Regulations.

The GOU is attempting to improve the Customs Administration by installing an

internationally recognized computerized documentation system and a new pre-shipment

inspection threshold of $5000.00. Uganda is planning to adopt the GATT definition of

value in place of the Brussels definition, in order to comply with WTO requirements.


30/55



IMPORT LICENSES

Import certificates, which are non-good-specific, are required and have a validity of 6

months. The certificates take the place of import licenses. Form E (Declaration of

Imports) can be processed by commercial banks and foreign exchange bureaus. Allimporters are required to complete Form E.

EXPORT CONTROLS

Items that cannot be exported without prior authorization by the Ministry of Trade

and Industry include:

n Uganda whether sawn, unsown, hewn or

machined (but not any other articles manufactured from such wood)

IMPORT/EXPORT DOCUMENTATION

The following supplementary documents may be required by the Uganda Revenue

Authority at the entry point, whenever the following goods are imported:

-forma invoices from the

Pharmacy Board

arms Certificate


31/55



The following supplementary documents will be required at the Customs exit whenever

the following goods are exported:

es and skins,

Veterinary Health Certificate

TEMPORARY ENTRY

Many products are shipped through Uganda on their way to eastern Congo and

Rwanda. The Customs Administration has reduced the time allowed for goods to transit

Uganda to 7 days.

LABELING, MARKING REQUIREMENTS

The following information must be clearly marked on imports and exports:

importer/exporter name, consignee, flight/vehicle details, place of discharge, number of

packages, container identity, description of goods, air way bill number/bill of lading, and

country of origin/destination.

PROHIBITED IMPORTS

The following items cannot be imported into Uganda:


32/55



STANDARDS

Importers/exports should contact the National Bureau of Standards for specific

information on standards.

FREE TRADE ZONES/WAREHOUSES

There are no free trade zones in Uganda. There are bonded warehouses.

SPECIAL IMPORT PROVISIONS

Specific questions regarding import regulations should be directed to the Customs

Administration.

MEMBERSHIP IN FREE TRADE ARRANGEMENTS

Uganda is a member of Preferential Trade Area (PTA) for East and Southern African

States, the Common Market for East and Southern Africa (COMESA) and the Africa-

wide Abuja Agreement. Duties and tariffs for countries in these groups, including South

Africa, are significantly lower than duties for non-members. Also, Uganda, Kenya and

Tanzania have formed the East African Cooperation (EAC) Secretariat and are actively

strengthening regional economic ties.

DISPUTE SETTLEMENT

Uganda opened its first commercial court in August 1996. The main objective of the

court is to deliver to the commercial community an efficient, expeditious and cost

effective mode of adjudicating disputes. However, a shortage of judges, lack of funds,

and minimal space have hampered its operations. The majority of business people

settle disputes out of court to save time and money. The newly opened Center ofArbitration for Dispute Resolution (CADER) should be able to assist in commercial

disputes.


33/55



TAXATION

In July 1996, Uganda began collection of a VAT at 17% for all businesses with an

annual turnover of USH 50 million (roughly equivalent to $35,000) or more. Employers

must make monthly deductions of employee income taxes under the pay-as-you-earn(PAYE) system. PAYE rates are graduated and begin with an annual income of

1,560,000 USH for residents. There is no tax-free threshold for non-residents. Also, the

Government of Uganda collects withholding taxes on dividends, interest, royalties, and

other payments. This tax ranges from 4% to 15% for residents and 15% to 20% for non-

residents. Corporate taxes stand at 30% for resident companies and 35% for non-

resident companies.

BUSINESS CUSTOMS

Business decisions are often made by a group. Ugandans like discussing business

issues with others before making decisions. Ugandans want to get to know people they

are dealing with and beginnings of meetings are generally occupied with introductory

Conversation about people's backgrounds and families. Refreshments are served at

business meetings. Good gift choices to bring from abroad would be business-related

items such as the item the company makes or wishes to sell.

Ugandans are quite conservative in the way they dress; outlandish clothing or the

exposure of large areas of ones body is uncommon. Women conventionally wear

dresses; men wear business suits.

It is not uncommon for Ugandans to arrive late for an event, and for meetings to

run over their scheduled time.


34/55



TARIFFS

Since its last Trade Policy Review (TPR) in 1995, Uganda has eliminated all

quantitative restrictions; most of the remaining non-tariff restrictions are maintained for

moral, health, security or environmental reasons. Tariffs have become Uganda's maintrade policy instrument. Uganda has been applying the customs valuation method

based on the transaction value since July 2000. The tariff structure has been simplified

through the reduction of the number of bands from five in 1995 to three (zero, 7%, and

15%), and the lowering of maximum ad valorem rates from 60% to 15%. All tariffs are

ad valorem, except on fuel. Some 16.4% of all tariff lines are duty free, while 39.3%

carry the maximum rate of 15%.

In addition to tariffs, imports may be subject to an import license commission of 2%,

a 4% withholding tax, as well as internal taxes, such as the excise duty of 10%, except

on cigarettes (130%), alcoholic beverages (70%) and soft drinks (15%), and a 17%

value-added tax (VAT), which apply equally to imports and domestic products. In

1999/2000, 52% of the revenue collected under VAT came from imported goods.

The simple average rate of Uganda's applied MFN 2000/01 tariff is 9%. There is

some tariff escalation. The import license commission and the withholding tax increase

the average rate to 15%. In addition, special protection is provided to the sugar and

textiles industries. Agriculture (Major Division 1 of ISIC Revision 2) is the most protected

sector, with an average tariff rate of 11.2%, followed by manufacturing (8.9%) and

mining and quarrying (8.8%). Uganda grants preferential tariff treatment to other

members of COMESA; the preferential bands are 0%, 4% and 6%.

Customs duties are bound for some 15.4% of Uganda's tariff lines, including all tariff

lines for agricultural products (WTO definition) and 2.7% of the lines for non-agricultural

products. The bindings are at ceiling tariff rates of 80% on most agricultural products,

except for 60 lines with bound rates between 40% and 70%; and between 40% and

80% on non-agricultural products. Other duties and charges on all these products are

bound at zero, although the import license commission of 2% and a withholding tax of


35/55



4% apply to all imports. The predictability of Uganda's tariff regime could be enhanced

by an increase in the coverage of its tariff bindings and by narrowing the gap between

bound and applied rates.

The only export duty is a 1% cess collected by the Uganda Coffee Development

Authority on coffee exports. The two main incentive schemes, i.e. the Fixed Duty

Drawback Scheme and the Manufacturing Under Bond Scheme, are currently available

to export-oriented companies. There are also incentives under which import duties on

certain raw materials may be refunded.

Exporters are allowed to export all items except those on a negative list and those

for which authorization must be obtained from regulatory bodies. The negative list

includes timber, charcoal, and whole fresh fish.

In September 2000, Uganda revised its regulations on public procurement for

purposes of greater transparency and decentralization; open tendering procedures are

generally preferred. Despite the lack of funding for standardization, there has been a

noticeable increase in the number of Ugandan standards (253 as of September 2001)

since the last TPR of Uganda in 1995.

The ongoing implementation by Uganda of its privatization program has contributed

to divestitures by the State of 108 out of 148 public enterprises. The new owners

include both Ugandans and foreigners. Uganda does not yet have legislation on

safeguards and competition. It is revising its legislation on anti-dumping, countervailing,

sanitary and phytosanitary measures, and on intellectual property, with a view to

aligning them on the relevant WTO Agreements.


36/55



4

Overview Different economic

sectors of selected country


37/55



Uganda's economic sectors reflect the legacy of colonial structures, the country's

position as a land-locked territory, its politically tumultuous past, and the widespread

lack of foreign investment in sub-Saharan Africa as a whole. Uganda is highly

dependent on agricultural exports in order to provide much-needed foreign currency,

and its underdeveloped industry and services necessitate an increasing level of imports.

Consequently, in 1997 the government was in 5.7 percent deficit as a percentage of

GDP (excluding external aid).

In addition, Uganda lacks a significant internal market for domestically produced

goods because of low household incomes. In light of these factors it is unlikely that the

economy will reduce its primary dependence on the export-based growth strategy of

producing goods such as coffee in the medium-term future; nonetheless, it does remaina leader in international coffee markets.

In order to address these geographical, historical, and material problems, the

Ugandan government is attempting to diversify its economic sectors to produce more

manufactured goods for domestic, regional, and international consumption to reduce the

dependence of the economy on foreign aid and imports. With the continued financial

support of the IMF, World Bank, EU, and United States for Uganda's free market

reforms there is a genuine possibility that the economy's present diversification will

contribute to its current growth rateone of the fastest in the world. Uganda had an

average GDP annual growth rate of 7.2 percent over 1990-99, which constitutes a

growth rate of agriculture of 3.7 percent, of services at 8.1 percent and industry at 12.7

percent. This consistent growth of various sectors suggests a dynamic economy.

Endowed with significant natural resources, including ample fertile land, regular

rainfall, and mineral deposits, it is thought that Uganda could feed the whole ofAfrica if

it was commercially farmed.[1] The economy of Uganda has great potential, and it

appeared poised for rapid economic growth and development. However, chronic

political instability and erratic economic management produced a record of persistent

economic decline that has left Uganda among the world's poorest and least-developed
http://en.wikipedia.org/wiki/Ugandahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Economy_of_Uganda#cite_note-0http://en.wikipedia.org/wiki/Economy_of_Uganda#cite_note-0http://en.wikipedia.org/wiki/Economy_of_Uganda#cite_note-0http://en.wikipedia.org/wiki/Economy_of_Uganda#cite_note-0http://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Uganda


38/55



countries. The national energy needs have historically been more than domestic energy

generation, though large petroleum reserves have been found in the west.

After the turmoil of the Amin period, the country began a program of economic

recovery in 1981 that received considerable foreign assistance. From mid-1984 onward,

however, overly expansionist fiscal and monetary policies and the renewed outbreak of

civil strife led to a setback in economic performance.

International trade and finance

Since assuming power in early 1986, Museveni's government has taken

important steps toward economic rehabilitation. The country's infrastructurenotably its

transport and communications systems which were destroyed by war and neglectis

being rebuilt. Recognizing the need for increased external support, Uganda negotiated

a policy framework paper with the IMF and the World Bank in 1987. It subsequently

began implementing economic policies designed to restore price stability and

sustainable balance of payments, improve capacity utilization, rehabilitate infrastructure,

restore producer incentives through proper price policies, and improve resource

mobilization and allocation in the public sector. These policies produced positive results.

Inflation, which ran at 240% in 1987 and 42% in June 1992, was 5.4% for fiscal year

1995-96 and 7.3% in 2003.

Investment as a percentage ofGDP was estimated at 20.9% in 2002 compared

to 13.7% in 1999. Private sector investment, largely financed by private transfers from

abroad, was 14.9% of GDP in 2002. Gross national savings as a percentage of GDP

was estimated at 5.5% in 2002. The Ugandan Government has also worked with donor

countries to reschedule or cancel substantial portions of the country's external debts.

Uganda is a member of the WTO.
http://en.wikipedia.org/wiki/Energy_in_Ugandahttp://en.wikipedia.org/wiki/Idi_Aminhttp://en.wikipedia.org/wiki/Civil_warhttp://en.wikipedia.org/wiki/Musevenihttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/WTOhttp://en.wikipedia.org/wiki/WTOhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Musevenihttp://en.wikipedia.org/wiki/Civil_warhttp://en.wikipedia.org/wiki/Idi_Aminhttp://en.wikipedia.org/wiki/Energy_in_Uganda


39/55



Currency

Uganda began issuing its own currency in 1966 through the Bank of Uganda.[2]

Prior to the failure of the East African Currency Board, Uganda used other countries'

currency.

There have been six changes of currency since 1966, but the 1987 version has

been stable. Upgrades to it have been intended to decrease counterfeiting and make

the currency more useful.

Agriculture

Agricultural products supply nearly all of Uganda's foreign exchange earnings, with

coffee alone (of which Uganda is Africa's leading producer) accounting for about 27% of

the country's exports in 2002. Exports of apparel, hides, skins, vanilla, vegetables, fruits,

cut flowers, and fish are growing, and cotton, tea, and tobacco continue to be

mainstays.

Most industry is related to agriculture.
http://en.wikipedia.org/wiki/Economy_of_Uganda#cite_note-1http://en.wikipedia.org/wiki/Economy_of_Uganda#cite_note-1http://en.wikipedia.org/wiki/Economy_of_Uganda#cite_note-1http://en.wikipedia.org/wiki/Hideshttp://en.wikipedia.org/wiki/Vanillahttp://en.wikipedia.org/wiki/Vegetablehttp://en.wikipedia.org/wiki/Fruithttp://en.wikipedia.org/wiki/Flowerhttp://en.wikipedia.org/wiki/Fishhttp://en.wikipedia.org/wiki/Cottonhttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Tobaccohttp://upload.wikimedia.org/wikipedia/en/5/5f/UgandanShillings20000.jpghttp://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Cottonhttp://en.wikipedia.org/wiki/Fishhttp://en.wikipedia.org/wiki/Flowerhttp://en.wikipedia.org/wiki/Fruithttp://en.wikipedia.org/wiki/Vegetablehttp://en.wikipedia.org/wiki/Vanillahttp://en.wikipedia.org/wiki/Hideshttp://en.wikipedia.org/wiki/Economy_of_Uganda#cite_note-1


40/55



Industry

The industrial sector is being rehabilitated to resume production of building

and construction materials, such as cement, reinforcing rods, corrugated roofing sheets,

and paint. Domestically produced consumer goods include plastics, soap, cork, beer,

and soft drinks. Major Cement manufacturers like 'Tororo Cement Ltd' caters to the

need of building and construction material consumers across East Africa.

Transportation and Communications

Uganda has about 30,000 kilometers (18,750 mi.), of roads; some 2,800

kilometers (1,750 mi.) are paved. Most radiate from Kampala. The country has about

1,350 kilometers (800 mi.) of rail lines. A railroad originating at Mombasa on the Indian

Ocean connects with Tororo, where it branches westward to Jinja, Kampala, and

Kasese and northward to Mbale, Soroti, Lira, Gulu, and Pakwach. Uganda's important

road and rail links to Mombasa serve its transport needs and also those of its

neighbors-Rwanda,Burundi, and parts ofCongo and Sudan. An international airport is

at Entebbe on the shore of Lake Victoria, some 32 kilometers (20 mi.) south of

Kampala.

The Uganda Communications Commission (UCC) regulates communications,

primarily "delivered through an enabled private sector

ENERGY SECTOR

The Energy Sector is one of the key sectors in the Ugandan economy.

On one side the sector provides a major contribution to the Treasury resources

(e.g. fuel taxes, VAT on electricity, levy on transmission bulk purchases ofelectricity, license fees and royalties) and foreign exchange earnings (power

exports). On the other side significant public investment has been injected into

the sector, particularly in the area of electricity supply. power sub-sector is now

attracting the largest private sector investments in the country. Therefore, the
http://en.wikipedia.org/wiki/Soaphttp://en.wikipedia.org/wiki/Cork_(material)http://en.wikipedia.org/wiki/Beerhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Kampalahttp://en.wikipedia.org/wiki/Mombasahttp://en.wikipedia.org/wiki/Indian_Oceanhttp://en.wikipedia.org/wiki/Indian_Oceanhttp://en.wikipedia.org/wiki/Tororohttp://en.wikipedia.org/wiki/Jinja,_Ugandahttp://en.wikipedia.org/wiki/Kampalahttp://en.wikipedia.org/wiki/Kasesehttp://en.wikipedia.org/wiki/Mbalehttp://en.wikipedia.org/wiki/Sorotihttp://en.wikipedia.org/wiki/Guluhttp://en.wikipedia.org/wiki/Pakwachhttp://en.wikipedia.org/wiki/Rwandahttp://en.wikipedia.org/wiki/Burundihttp://en.wikipedia.org/wiki/Democratic_Republic_of_the_Congohttp://en.wikipedia.org/wiki/Sudanhttp://en.wikipedia.org/wiki/Entebbehttp://en.wikipedia.org/wiki/Lake_Victoriahttp://en.wikipedia.org/wiki/Lake_Victoriahttp://en.wikipedia.org/wiki/Entebbehttp://en.wikipedia.org/wiki/Sudanhttp://en.wikipedia.org/wiki/Democratic_Republic_of_the_Congohttp://en.wikipedia.org/wiki/Burundihttp://en.wikipedia.org/wiki/Rwandahttp://en.wikipedia.org/wiki/Pakwachhttp://en.wikipedia.org/wiki/Guluhttp://en.wikipedia.org/wiki/Sorotihttp://en.wikipedia.org/wiki/Mbalehttp://en.wikipedia.org/wiki/Kasesehttp://en.wikipedia.org/wiki/Kampalahttp://en.wikipedia.org/wiki/Jinja,_Ugandahttp://en.wikipedia.org/wiki/Tororohttp://en.wikipedia.org/wiki/Indian_Oceanhttp://en.wikipedia.org/wiki/Indian_Oceanhttp://en.wikipedia.org/wiki/Mombasahttp://en.wikipedia.org/wiki/Kampalahttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Beerhttp://en.wikipedia.org/wiki/Cork_(material)http://en.wikipedia.org/wiki/Soap


41/55



sector is not only a vital input into other sectors, but also promises to be a large

source of employment for Ugandans.

The Ministry of Energy and Mineral Development (MEMD) is

responsible for the sector, dealing specifically with energy policy formulation,implementation and monitoring.

The energy sector in Uganda comprises the following supply sub-sectors:

1) Power

2) Petroleum

3) New and Renewable Sources of Energy; and

4) Atomic Energy.

FINANCIAL INSTITUTIONS

The financial institutions currently operating in Uganda can be categorized into 6

groups: -the Central Bank, Commercial Banks, Credit institutions, Insurance companies,

Development Banks and Foreign Exchange Bureaus. As of September 2000, there

were 16 commercial banks, 8 credit institutions, 2 development banks, 15 insurance

companies, 28 insurance brokers, 18 micro finance institutions and 62 foreign exchange

bureaus.

Nature and Structure of Financial Institutions in Uganda


42/55



Ugandas financial system is small, in terms of the value and the volume of

transactions undertaken, and undiversified in terms of the type of transactions that it

undertakes. The banking sector is dominated by retail commercial banking that is

concentrated mainly in the capital city, absence of medium to long term financing,

segmentation and over concentration on the corporate customers. The sector has very

few products, notably absent are building societies, mortgage financing, merchant

banking and discount houses. The financial infrastructure is generally underdevelopedand lacks automation.


43/55



CENTRAL BANK

Government-owned institutions dominated most banking in Uganda. In 1966 the

Bank of Uganda (BOU), which controlled currency issue and managed foreign

exchange reserves, became the Central Bank. The main priority of this bank is to

strengthen its capability to regularly conduct on-site inspections and monitor and

evaluate financial institutions internal risk management systems to ensure conformity to

on-going capital adequacy and other prudential requirements. The BOU has begun to

implement short-term measures to strengthen and expand its supervisory capacities.

COMMERCIAL BANK

Commercial banks dominate the financial sector and account for over 90 per cent

of the assets of the banking system. They are responsible for providing banking facilities

to the public and operate the payments mechanism. The commercial bank system

consists of the indigenous commercial banks (dominated by the Uganda Commercial

Bank Ltd and Centenary Rural Development Bank Ltd) and the foreign banks

(dominated by the Standard Chartered Bank Ltd). Most commercial banking facilities

are concentrated in urban areas.

Local Commercial Banks:

Foreign Commercial Banks:


44/55



INSURANCE COMPANY

The Insurance Statute of 1996 governs the insurance sub-sector, which is still

underdeveloped, and is supervised by the Uganda Insurance Commission. The

insurance industry is largely underdeveloped. As at February 2001, there were 15

insurance operators categorized as -- 11 covering Non-Life Insurance only and 4

covering Non-life and Life insurance. There were 28 licensed insurance brokers

categorized as; 4 for non-life insurance only, 19 for non-life and life insurance, 2 for lossassessment, and 3 for insurance surveyors and loss assessors

CREDIT INSTITUTIONS

There are 8 credit institutions operating in Uganda. They play a major role in

mobilizing resources and financing investments. They are all privately owned, except

the Housing Finance Company of Uganda and PostBank (U) Ltd. Others are ---


45/55


46/55


47/55



For 5 years, the GDP growth rate has been increasing between 6.3% to 9.5%

annually, driven by consumption and investment. However, the slowing down of theglobal economy has curbed demand and consequently export growth and has shrunk

wire transfers from expatriate workers, leading to lower growth. Estimated at 5.8% in

2010, it should consolidate during the coming years.

Public authorities are implementing the National Development Plan (NDP) over a

period of five years (2010/11-2014/15), based on the development of infrastructures and

agriculture, and aimed at stimulating exports and removing growth barriers. In the

shorter term, the government must face a hike in inflation and the reduction in

international aid.

Despite a clearly shrinking poverty level and obvious progress in infant nutrition,

education and health, Uganda is still classified amongst the Least Developed Countries


48/55



(LDC) category. It is disadvantaged by having the world's highest demographical growth

rate and faces significant regional disparities.

FDI in Figures

Uganda is the first among the East-African countries in terms of attracting FDIs.

FDI stocks in terms of GDP increased between 2000 and 2008 and the trend is

expected to continue during the coming years. The recent discovery of oil deposits

should benefit FDIs.

The Ugandan Government has pursued a steady investment climate improvement

policy by reducing bureaucracy, streamlining the legal framework, fighting corruption

and sustained currency reforms. Additionally, the country has a wealth of natural

resources. Nevertheless, the weakness of the communication infrastructures and the

inadequacies of the higher education system remain real barriers.

The Coffee and mining sectors attract most of the foreign investments. Kenya,

Germany and Belgium are the main investor countries.

Foreign Trade Overview

Uganda is open to foreign trade, which represented slightly under 50% of the

GDP in 2009. It is a member of the WTO, COMESA, EAC (East African Community),

the ESAAMLG (Eastern and South African Anti Money Laundering Group) and the

IGAD (the Intergovernmental Authority on Development, which groups together the 7

States of the Corn of Africa).

The country's trade policy aims at encouraging cooperation and integration in

East Africa, in order to boost production and export earnings. Custom duties are not

very high and the country has few trade barriers. However, corruption, and under-

developed infrastructures act as trade barriers. The significant availability of natural
http://www.wto.org/http://www.comesa.int/http://www.eac.int/http://www.esaamlg.org/http://www.igad.org/index.php?option=com_frontpage&Itemid=1http://www.igad.org/index.php?option=com_frontpage&Itemid=1http://www.esaamlg.org/http://www.eac.int/http://www.comesa.int/http://www.wto.org/


49/55



resources, a low rate of inflation, the improvement in national security and the return of

exiled Ugandan-Indian entrepreneurs are factors that encourage foreign trade.

Despite increasing exports, the trade balance remains negative. The deficit

deepened in 2010, due to a more significant increase in non-oil imports and the effect of

the acceleration of investment in oil production, a tendency which should continue.

Uganda mainly exports coffee, fish, tea, cotton, flowers, horticultural products

and gold, to Sudan, Kenya, Switzerland, Rwanda, United Arab Emirates, RDC, the

United Kingdom, the Netherlands and Germany. The country imports capital goods,

vehicles, petroleum products, medical products and cereal, from the Emirates, Kenya,

India, China, South Africa and Japan. Its main trade partners are the COMESA member

countries, the European Union and South Africa.

News Related to International Trade in Uganda

Uganda: I Feel Let Down - Farmer- Nov 19, 2011

Coffee is Xavier Baluku's favourite cash crop. And it is not just Baluku's favourite crop

but Uganda's primary foreign exchange earner. Most of the coffee grown in Uganda's

mountainous Rwenzoris is drunk in Europe and North America. The people on this

mountain have special connection to coffee as it is their main source of household

income. With proceeds from coffee they are sending their children to school.

Uganda: 20,000 Grapple With River Blindness in Kabale Sub Counties - Nov 15,

2011At least 21,000 people living in Ikumba, Ruhija and Muko sub-counties in

Kabale are suffering from River Blindness and that this poses a possibility of food

shortage, the district vector control officer has said.
http://www.globaltrade.net/m/c/Uganda.html###http://www.globaltrade.net/m/c/Uganda.html###http://www.globaltrade.net/m/c/Uganda.html###http://www.globaltrade.net/m/c/Uganda.html###


50/55



6Present Trade Relations and

Business Volume

of

different products with India


51/55



India has been actively promoting trade with Africa in recent years. To boost the

countrys trade with the Sub-Saharan African region, the Government of India launched

the Focus: Africa programme under the EXIM Policy 2002-07. Target countries

identified during the first phase of the programme include Mauritius, Kenya and

Ethiopia. The Government of India provides financial assistance to various trade

promotion organizations, export promotion councils and apex chambers in the form of

Market Development Assistance under the Focus: Africa programme.

To promote bilateral and regional commercial relations with the COMESA Region,

Indias Exim Bank has extended Lines of Credit (LOCs) to support export of eligible

goods on deferred payment terms. The operative LOCs covering this region include

US$ 5 million each to the Eastern and Southern African Trade and Development Bank

(PTA Bank), the Industrial Development Bank Ltd, Kenya, and the East African

Development Bank (EADB). These Lines of Credit seek to expand export of product


52/55


53/55



In another development, the Indian government opened a business centre in

Durban to help cut the red tape in deals between the two nations. With more Indian

businessmen looking to gain a foothold in South Africa, a high-powered delegation

headed by India's wealthiest man, industrialist Ratan Tata, visited the country recently.

Already Tata Motors and its rival, Indian car giant Mahindra & Mahindra, have made

inroads into the South African motor industry with the recent launch of new vehicles.

Tata Africa Holdings, a subsidiary of the Tata Group, is vying for a controlling stake in

South Africa's second telephone network operator worth more than Rands 4 billion.

Total bilateral trade betwen India and South Africa is approaching Rand 6.5 billion, with

imports from India at Rand 3.12 billion and exports to India at Rand 3.35 billion. Indian

investment in South Africa is estimated at $100 million.

THE DIAMOND CENTRE

The ambition of the Botswana government is to establish Botswana as the major

diamond center of the world. Being the world's largest diamond producer was not in

itself enough and the country's ambition is to develop many other diamond-industry

competencies.

Recent developments have moved Botswana closer to its

ambition: one being De Beers' aggregation announcement and

the other being the establishment of the Diamond Technology

Park, which would mean that Botswana would have facilities that

would not only service the Botswana diamond industry, but also

the diamond industry of the world by adding value to diamonds

within Botswana.

Modelled on similar successful international developments, the concept of the

diamond technology park was that of a supply-chain cluster that could house the entire


54/55



diamond industry in a centralized, finite manner. The park is being built in phased

developments, creating opportunities for small, medium and micro enterprises.

With half of the diamond industry involving services, the creation of the Diamond

Technical Park would have an economic multiplier effect and would involve Botswanans

in services enterprises. The technology park also had potential to provide work for

Botswana's educated population, which had lacked opportunity.

Diamond Technology Park tenants are being drawn from the world's leading

diamond companies, which have superior levels of expertise and solid experience.

Other tenants would include companies that serviced the diamond-manufacturing

industry such as banks, courier companies, machinery suppliers, information-

technology companies, cleaning companies, security firms, a laboratory, restaurants,

retail shops and self-catering accommodation.

CUSTOMS AND EXCISE DUTIES

In general, goods imported into Botswana from outside the Southern African

Customs Union - SACU (Botswana, Lesotho, Namibia, South Africa and Swaziland)

attract customs duties at rates outlined in the Customs Tariff Book. Customs duties are

paid against a prescribed declaration form formally known as a bill of entry, form

BW500. A tariff book as well as a goods code book is available for sale at all regional

Customs and Excise offices. There are some provisions in the Customs Tariff Book and

Value Added Tax (VAT) Act exempting payment of certain customs and excise duties

as well as VAT (10%) on raw materials imported by registered manufacturers or

industries.


55/55


INDUSTRY SECTORS

The oil sector has the potential to change the future of Chad. The Doba Oil Basin

is the centre of oil-sector construction and production estimates have been set at up to

250 000 barrels a day. This should result in annual government revenues of between

$80 and $100 million. Chads economic future is largely dependant upon the

exploitation of oil resources.

Construction on the Chad-Cameroon pipeline has begun at a hectic pace and will

be built at a cost of $3.5 billion. A consortium of oil companies and the World Bank have

provided the funding for the project. An oil refinery is planned to produce refined

products.

On the other hand, the mining sector in Chad is highly prospective and large areas

for gold, bauxite, uranium, silver and alluvial diamonds have been identified. Many

investment opportunities have also arisen in the telecommunications, cotton and power

sectors. Privatisation is occurring in these sectors and foreign firms are participating in

the tender process.

Date post:	03-Apr-2018
Category:	Documents
Upload:	jignesh-prajapati
View:	219 times
Download:	0 times

GCE_MBA_SEM-3.docx

Documents